Tether Introduces New Yuan-Linked Stablecoin, CNHT

The cryptocurrency space has had its fair share of controversies throughout the course of its short existence, and one of the biggest ones to date is the one related to stablecoins. There are plenty of stablecoins in circulation these days, but the most controversial one so far is Tether, and it is simply due to the fact that is it is the most popular one within this particular group of digital assets.

Key Analysis

The reason why many in the crypto space are suspicious of Tether and other stablecoins is because most of them are backed 100% by the United States dollar (or another fiat currency). However, it goes without saying that for many traders, Tether has its own uses, and it has become quite popular over the years.

The controversies surrounding Tether are not going to stop it from growing further, and today the stablecoin issuer announced that it has launched another stablecoin, only this one is going to be backed by the Chinese Yuan. The one backed by the US Dollar is known as the USDT, and the newly launched token is going to be called the CNHT. It should be noted that the Tether platform has also produced the EURT, which is backed 100% by the Euro. Due to the launch of this new digital asset, Tether has stated that the world’s main fiat currencies can now be put to proper digital use.

Tether has had a controversial history so far and is subject to lawsuits related to security laws violations. In addition to that, it has also been alleged that Tether has been used by rogue traders to artificially prop up the price of Bitcoin and other cryptocurrencies. It is a problematic allegation since such actions might point to a pump and dump scheme by way of which gullible investors might end up losing a lot of money. It remains to be seen how the latest digital asset is welcomed by the crypto space.